Glencore shares storm ahead on zinc cutback news
The move — which will involve a cut in annual zinc production by 500,000 tons in Australia, South America and Kazakhstan — is the latest response by the Switzerland-based company to the slide in commodity prices that has raised concerns over Glencore's underlying business model.
The selling pressure has accentuated in recent weeks as investors fretted over the impact of falling commodity prices on earnings and the company's ability to meet its debt repayments amid low commodity prices.
Glencore, which was founded in 1974 by the late commodities trader Marc Rich, floated in 2011 in a listing that valued the company at a little less than 40 billion pounds ($60 billion) and made billionaires of several of the company's executives, including CEO Ivan Glasenberg.